Asset Allocation Models

Browse all Asset Allocation Models content

Asset allocation models guide how investors spread capital across stocks, bonds, real assets, and alternatives to balance risk and return. They provide the blueprint for turning goals into portfolios, and for staying disciplined when markets test conviction.

Strategic Asset Allocation (SAA) sets a long-term target mix based on an investor’s objectives, risk tolerance, and time horizon. It anchors decision-making and keeps portfolios aligned through consistent, rules-based rebalancing. Tactical Asset Allocation (TAA) allows investors to make measured, short-term adjustments to capture opportunities or manage emerging risks without abandoning the strategic foundation.

The Total Portfolio Approach (TPA) builds on SAA by viewing the portfolio as a single, integrated whole. Instead of managing asset classes in silos, TPA focuses on total risk and total return, enabling greater flexibility in asset allocation strategies.

At a Glance:

Asset allocation models turn investor goals into disciplined portfolio decisions.
Strategic allocation anchors portfolios through long-term targets.
Tactical allocation allows measured short-term shifts as markets evolve.
Total Portfolio Approach views portfolios holistically by total risk and return.

Latest Research

Research Report

The Total Portfolio Approach: A Practical Guide for Navigating the Transition to TPA

By Roger Urwin, FSIP, and Genevieve Hayman, PhD

Explore the total portfolio approach (TPA), its advantages over traditional asset allocation, and the governance, culture, technology, and leadership needed for adoption. Learn from leading asset owners and gain practical guidance for transitioning to TPA.

Research Foundation

Total Portfolio Approach: A Critical Literature Review

By Redouane Elkamhi and Jacky S.H. Lee

This literature review explains the total portfolio approach (TPA) as integrated total-fund decision-making. It shows how governance, incentives, liquidity, and risk capacity — not asset-class silos — shape institutional portfolio outcomes over time, without guaranteeing broad outperformance for long-term investors.

Research Foundation

Investment Committees: Governance and Design Choices

By Bernhard (Bernd) Scherer

Investment committees are widespread but often flawed. This monograph shows how structure and group dynamics distort decisions and offers a transparent, model-driven approach to improve accountability and outcomes.

Videos

Video

Total Portfolio Approach as a Gateway to Better Performance and Resilience

With Roger Urwin, Global Head of Investment Content at Willis Towers Watson

Enterprising Investor Video Podcast

Part 1: From Strategic Asset Allocation to a Total Portfolio Mindset Description

Roger Urwin, Global Head of Investment Content at Willis Towers Watson, reflects on how leading asset owners are rethinking strategic asset allocation amid faster regime change, rising systemic risk, and growing complexity.

Enterprising Investor Video Podcast

Part 2: What a Total Portfolio Approach Looks Like in Practice

Roger Urwin, Global Head of Investment Content at Willis Towers Watson, describes how TPA functions in practice, from new roles like the Chief Total Portfolio Officer to the governance structures, data, and decision frameworks that shape portfolio-wide thinking.